PRADHAN MANTRI JAN DHAN YOJANA

"Let us celebrate today as the day of financial freedom.“ -Prime Minister Narendra Modi 15th August 2014

Contents of Pradhan Mantri Introduction Purpose What the Scheme Provides Performance and Achievements Participants Investments

Introduction Also called Prime Minister's People Money Scheme. Launched by PM Narendra Modi on 28th August 2014. It is India's National Mission for Financial Inclusion to ensure access to financial services.

Purpose Gigantic task of enrolling over 7.5 crore households and to open their accounts. Bank account for each household was a "national priority". Raise Indian Economy. To decrease corruption in Govt. subsidy schemes. Digitalize banking system.

What the Scheme provides??? Account holders will be provided bank accounts with no minimum balance with RuPay debit Cards. Introduced by National Payments Corporation of India (NPCI)- a person can transfer funds, check balance through a normal phone also. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP).

Scheme providing Continues… Medical Insurance Cover- ₹30000. Accident Insurance cover- ₹1 lakh. After six months of opening of the bank account holders will be eligible for ₹5,000 overdraft from the bank.

Performance and Achievements On the inauguration day, 1.5 Crore bank accounts were opened. By September 2014, 3.02 crore accounts were opened. Total of 7 Crore bank accounts have been opened with deposits totalling more than ₹50 billion as of 6 November 2014.

Continued Achievements… The scheme entered into Guinness book of world records for 'The most bank accounts opened in one week'. The balance in Jan Dhan accounts rose by more than ₹270 billion between 9 November 2016 and 23 November 2016.

Advantages This scheme provides financial inclusiveness and banking access to millions of households across the country. Provides the insurance cover and gives a sense of security to millions of households across our country. By linking this scheme with various other government schemes money will be directly credited into the accounts of the beneficiaries.

Continued Advantages…. By inculcating the habit of formal banking to the left out population, savings can boost up. Providing access to micro credit in the later phases of the scheme. Thereby weeding out money lenders who charge exorbitant interest rates. Once 100% financial inclusion is achieved we can go for transaction based tax on which must be made only through debit card for any purchase. A measure pointed out by many economists to curtail black money.

Disadvantages Logistics The overdraft facility might not go well with our masses. Many accounts opened under this scheme were lying dormant. The educational level of our masses could also be a problem as they might be vulnerable to cyber crimes. Already over strained public sector banking infrastructure and additional work load on the employees.

Participants Nationalized Banks Private Sector Banks Axis Bank State Bank of India Bank of Baroda Bank of India Canara Bank IDBI Bank Indian Bank Punjab National Bank Union Bank of India Oriental Bank of Commerce Private Sector Banks Axis Bank Federal Bank HDFC Bank ICICI Bank Indus Bank ING Vysha Bank Andhra Bank YES Bank Kotak Mahendra Bank Karnataka Bank

Investments Public Sector Banks Regional Rural Banks Private Banks Total No. of Accounts Rural 11.74 Cr 3.86 Cr 0.52 Cr 16.11 Cr Urban 9.43 Cr 0.61 Cr 0.35 Cr 10.40 Cr 21.17 Cr 4.47 Cr 0.87 Cr 26.51 Cr No. of RuPay Cards 16.75 Cr 3.36 Cr 0.82 Cr 20.93 Cr Aadhar Seeded 12.54 Cr 2.26 Cr 0.39 Cr 15.19 Cr Account Balance 54,507 Cr 12,976 Cr 2,587 Cr ₹70,070 Cr Zero balance accounts 25.08% 20.53% 33.92% 24.61%

Current Status As on 3rd November 2016, 6.98 crore bank accounts had been opened across the country. Overall of ₹5300 Cr. was parked in them. A tad under 4 crore RuPay cards had been issued to these account holders. Remaining expected to get the ATM card over the next few weeks.

Conclusion A Game Changer for the Economy. Scheme effective in passing on benefits to poor persons if implemented properly and concerns addressed. Overdraft will act as micro-finance and prevent loans at massive rates; discourage Ponzi schemes and financial frauds like Sahara scam. Has the scope to be a “win-win” situation for bankers and customers alike, as well as the nation through eradication of financial untouchability.